Rising energy prices hit Baltic dairy companies
In the first half of 2022, dairy plants in Lithuania sent products to non-EU countries compared to the same period of the previous year, said Egidijus Simonis, president of the Lithuanian Dairy Union, Pieno centras. A decrease of 27.7%. Lithuania's dairy factories are among the most modern in Europe, but energy shortages are affecting the country more than other European countries, he said.
"Because our dairy industry pays more energy than other countries, it's difficult for them to compete in export markets," Simonis said.
Lithuanian dairy farms consume about 160,000 MWh of electricity annually. They paid an energy bill of 13 million euros last year. In 2022 this figure is expected to be 50 million euros.
Lithuania sends its dairy products to Germany, Poland, Latvia, Italy, the Netherlands and Estonia, all of which are in the European Union. Most of these countries use government programs to help boost dairy production. The Lithuanian Food Industry Association has also asked the government to help companies cope with rising electricity costs, but so far there has been no state aid.